SAP Financial Accounting (SAP FI) Practice Exam

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What options are available to comply with dual reporting of GAAP and IFRS in SAP?

Single ledger accounts
Parallel accounts and multiple financial statement versions
Additional ledger disclosures
Revised reporting standards

The correct answer is: Parallel accounts and multiple financial statement versions

The option of using parallel accounts and multiple financial statement versions is aligned with the requirements for dual reporting under both GAAP and IFRS. In SAP, this setup allows organizations to maintain separate ledgers for different accounting principles. Parallel accounts enable the tracking of financial transactions in a way that each accounting standard's requirements are met independently. This means that organizations can generate financial statements that conform to both GAAP and IFRS seamlessly, providing the necessary compliance without the risk of error that could arise from manual adjustments. Additionally, the capability to create multiple financial statement versions allows for the presentation of financial data in varied formats as required by different regulations. Users can define several layout options within the financial reporting framework, facilitating ease of reporting and ensuring all stakeholders receive the information they need to meet regulatory compliance. Other options, such as single ledger accounts, would not support the complexity of maintaining records that align with two different sets of accounting principles. Additional ledger disclosures and revised reporting standards may enhance information clarity or compliance but do not directly address the dual reporting requirements, making them less suitable for the specific need to comply with both GAAP and IFRS in a structured manner.